Dubai’s IFFCO heads toward provisional liquidation amid Debt strn

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Dubai’s IFFCO heads toward provisional liquidation amid debt strain: FT

May 4, 2026

DUBAI,— IFFCO Group, a Dubai-based food conglomerate, is preparing to enter provisional liquidation as it struggles to resolve a heavy debt burden and internal shareholder disagreements, according to a report by the Financial Times.

The move would place the company under court-supervised protection, allowing it to preserve assets while creditors and stakeholders consider restructuring options.

Advisory firm FTI Consulting is expected to be involved in managing the process, which is typically used in situations where a company faces acute financial stress but has not yet entered full liquidation.

IFFCO has been attempting to restructure approximately $2 billion in debt, working with lenders that include international banks such as HSBC.

The company had previously appointed Rothschild & Co to advise on a restructuring plan, but progress has been slow. As liquidity pressures intensified, the group had already paused principal repayments to creditors.

People familiar with the matter have indicated that disagreements among shareholders have further complicated efforts to reach a deal with lenders.

The deadlock has limited the company’s ability to finalize a restructuring plan, contributing to the decision to pursue provisional liquidation as a means of stabilizing the situation.

Founded in 1975 and headquartered in Dubai, IFFCO operates in more than 100 countries and employs over 12,000 people.

The company produces a wide range of consumer goods, including edible oils, dairy products, and packaged foods. Its portfolio includes brands such as London Dairy, Tiffany and Noor, which are widely distributed across the Middle East, Africa and parts of Asia.

Provisional liquidation is designed to provide breathing space for distressed companies by temporarily shielding them from creditor enforcement actions while an independent party assesses restructuring options.

Possible outcomes include a negotiated debt restructuring, the sale of assets, or, if no agreement can be reached, full liquidation of the business.

IFFCO’s situation is being closely watched by regional investors and lenders, given its scale and role in food supply chains across the Middle East.

(With files from Agencies)